Adobe disappoints Wall Street

Software maker Adobe appears to have disappointed the cocaine-nose jobs of Wall Street with its latest results. They are weeping…

It was not as if the results were bad, in fact Adobe Systems second-quarter revenue and full-year revenue forecast just about met analysts’ estimates, it is just that Wall Street hoped that they would see increased demand from the outfit’s Creative Cloud package of software tools.

Adobe has been focused on selling its software through web-based subscriptions, which ensures a predictable and recurring revenue stream. This helped Adobe’s cash rise for nine straight quarters and should mean that growth would be predictable going forward as most of the company’s clients were now on the subscription model

However Adobe’s forecast for the current quarter was largely below estimates – mostly because Adobe is always conservative on its outlooks and Wall Street suddenly seems to think that is a weakness.

Revenue from the digital media business, which houses Creative Cloud, jumped 26 percent to $943 million, but fell just short of analyst’s estimates of $944.3 million, according to FactSet StreetAccount.